The Local Power of the CADF and CIPS Panel Unit Root Tests

Westerlund, Joakim; Hosseinkouchack, Mehdi; Solberger, Martin

doi:10.1080/07474938.2014.977077

Cited by 47 publications

(22 citation statements)

References 15 publications

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“…The second generation panel unit root tests should be used if the cross-sectional dependence is detected between the series because the second-generation tests relax the restraining cross-sectional independence assumption of first-generation unit root tests. 123 Pesaran 120,124 developed the most popular second generation panel unit root tests compared to others: 125 cross-sectionally augmented Dickey–Fuller (CADF) and cross-sectionally augmented Im, Pesaran, and Shin (CIPS) tests. In this study, the CADF test is employed to investigate whether the series are stationary or nonstationary.…”

Section: Methodsmentioning

confidence: 99%

The long-run environmental impacts of economic growth, financial development, and energy consumption: Evidence from emerging markets

Çetin

Bakirtaş

2019

Energy & Environment

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In this study, the long-term interactions between carbon dioxide (CO2) emissions, real gross domestic product, fossil fuel consumption, and financial development are examined for 15 emerging markets during 1980–2014 by using heterogeneous dynamic panel data techniques. Long-run elasticity results show that the environmental Kuznets curve hypothesis is not valid for emerging markets. Besides, long-run findings reveal that fossil fuel energy consumption has a powerful negative impact on the environmental quality of emerging markets. Moreover, long-run findings of emerging markets show that 1% increase in financial development raises CO2 emissions at 0.76% level. Considering empirical findings, emerging markets should tend to use environmentally friendly technologies to avoid the possible environmental problems caused by pollution. Therefore, green energy investors should be supported by possible incentive policies. In addition, emerging markets should turn towards financial regulations, which extend credit channels for clean industries whereby emerging countries could achieve their sustainable development goals.

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Section: Methodsmentioning

confidence: 99%

The long-run environmental impacts of economic growth, financial development, and energy consumption: Evidence from emerging markets

Çetin

Bakirtaş

2019

Energy & Environment

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“…We adopt the cross-sectional augmented Im-Pesaran-Shin (CIPS) and cross-sectional augmented Dickey-Fuller (CADF) [111]. The CIPS represents the augmented form of IPS which estimates by averaging the individual CADF statistical testing for every panel [112]. These twopanel unit root testing approaches effectively estimate heterogeneity and cross-sectional dependence (CSD).…”

Section: Unit Root Testingmentioning

confidence: 99%

Probing the Effect of Governance of Tourism Development, Economic Growth, and Foreign Direct Investment on Carbon Dioxide Emissions in Africa: The African Experience

Agyeman

et al. 2022

Energies

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The environmental repercussions of extensive carbon dioxide (CO2) emissions on the environment are crucial for policymakers and scholars. The repercussions of and connection between economic growth (ECG), tourism (TOUR), and foreign direct investment (FDI) on CO2 emission mitigation have been measured and argued from empirical and theoretical perspectives by scholars. Notwithstanding, the extant body of knowledge has failed to incorporate and investigate the function of governance in decarbonizing tourism activities and FDI from CO2 emissions to attain a healthy and quality environment in Africa. Hence, this current research investigates governance’s role in the reduction processes of CO2 emissions grounded in environmental Kuznets curve (EKC) conceptual assumptions for panel data spanning 2000 through 2020 for 27 African countries. This research utilized the Westerlund panel cointegration approach for the investigation of the cointegration of the selected variables. This study applied the Driscoll–Kraay regression approach for the long-term estimation. In addition, the dynamic ordinary least squares (DOLS) and the pooled mean group (PMG) were used for robustness checks. The findings of this research indicated that the governance (GOV) indicators employed have a statistically significant effect on the CO2 emission reduction. Besides, this study found that the appreciation of the income of the nations gives credence to the formation of the EKC theory and contributes to the decline in CO2 emissions within the selected African nations. The findings revealed that tourism, FDI, ECG, and GOV are positive and significant factors leading to increased CO2 emissions in Africa. Furthermore, the results showed that effective governance and control of FDI inflows and tourism activities can support decarbonization. These findings suggest the merits of governance in ensuring effective decarbonization policies of the environment, and policy suggestions are accordingly put forward.

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“…However, these tests do not take into account the cross-sectional dependence. Hence, the Cross-sectional augmented IPS (CIPS) and Cross-sectional Augmented Dickey-Fuller (CADF) tests developed by Pesaran (2007) are employed where the ADF regressions are improved with cross-section averages of lagged values and first differences for each unit ( Westerlund et al., 2016 ). CADF statistics can be formulated as follows:

…”

Section: Methodsmentioning

confidence: 99%

Environmental quality and its nexus with informal economy, corruption control, energy use, and socioeconomic aspects: the perspective of emerging economies

Sultana

Rahman

Khanam

et al. 2022

Heliyon

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The Local Power of the CADF and CIPS Panel Unit Root Tests

Cited by 47 publications

References 15 publications

The long-run environmental impacts of economic growth, financial development, and energy consumption: Evidence from emerging markets

The long-run environmental impacts of economic growth, financial development, and energy consumption: Evidence from emerging markets

Probing the Effect of Governance of Tourism Development, Economic Growth, and Foreign Direct Investment on Carbon Dioxide Emissions in Africa: The African Experience

Environmental quality and its nexus with informal economy, corruption control, energy use, and socioeconomic aspects: the perspective of emerging economies

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